Windstream Falls 3.8% On 13% Drop In Q1 Net Income

By Michael Aneiro

Ah, those yieldy but occasionally volatile telecom stocks. Dividend-rich shares of Windstream (WIN) got a little more dividend-rich Thursday following a 3.8% drop in share price after the communications and broadband company reported a 13% drop in Q1 earnings and revenue fell short of expectations. Shares closed down 32 cents to $8.20. The price drop has boosted WIN’s dividend yield to an even more enticing 12.2%, from 11.7% previously.

We remain Neutral on Windstream partly based on the company’s progress at slowing the rate of revenue erosion from the shift in its asset mix, but the company’s path to deleveraging its financial leverage at its current dividend payout remains slow and susceptible to risk if the operating environment does not fully cooperate with the company’s ambitions to eventually grow revenue and at least stabilize OIBDA.

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